A Brisbane business could be about to shake up the local real estate market, offering agents the chance to take home more sales commission.
UrbanX boss Dan Argent believes the system in which head offices support real estate agents is broken. This encouraged him to come up with a solution to make it better.
“Many agents have to pay their way, contribute to their superannuation and sales assistants. Even though they get half of the commission, their income tends to be 25 per cent of the total commission,” Mr Argent said.
Mr Argent said this portion of take-home pay seems criminally low, given agents do the hard legwork.
“Today’s real estate agent really is running their own business — doing all the hard yakka — while their agency retains most of the commission,” he said.
“Sellers are usually listing with the agent, not the agency.”
He came up with a model that would reward talented agents by giving them access to higher incomes and better support from head office.
The Brisbane facility includes hot-desking, administrative and marketing support with ongoing high-end training designed to teach agents how to work smarter and live better, Mr Argent said.
“The agent retains 70 to 85 per cent of their sales commission.
“Some of the agents have seen their net income rise by 50 per cent overnight.”
However, the additional perks come with conditions. The agents need to maintain high customer satisfaction, which will come from an Uber-like star system where the clients will be asked to rate the agents out of five stars.
“If an agent’s rating falls below a four-star average, they’re kicked off the UrbanX platform,” Mr Argent said.